Salzgitter (SZG) Investor Presentation summary

Group overview and business structure

• Operates globally in steel production, processing, trading, and technology, with a diversified product portfolio including strip products, tubes, heavy plates, engineering services, and machinery.

• FY 2023 external sales reached €10.8 billion, EBT €238.4 million, and 23,318 employees; main business units are Steel Production, Steel Processing, Trading, and Technology.

• Sales are well-diversified by product (43% strip steel, 15% tubes, 15% filling/packaging lines) and customer industry (24% traders/steel service centers, 14% vehicle construction, 14% food/beverage).

• 54% of sales are outside Germany, with significant presence in the EU, Americas, and Asia.

• Key participations include Aurubis (29.99%), Hansaport (51%), and Hüttenwerke Krupp Mannesmann (30%).

Financial performance and position

• FY 2023 saw a decline from record 2022: sales €10.8bn (-14%), EBITDA €677m, EBT €238m, earnings per share €3.70, ROCE 5.6%.

• H1 2024: sales €5.24bn, EBITDA €234m, EBT €11m, net loss €19m, ROCE 1.9%; core workforce 23,511.

• Cash flow from operations in H1 2024 was negative (-€137m), with cash and cash equivalents dropping to €581m.

• Balance sheet remains solid with €4.8bn equity and pension obligations fully covered by internal funds.

• Dividend yield target above 2%, with active portfolio management including recent acquisitions and divestments.

Market environment and trends

• Raw material prices remain volatile; energy prices have returned to pre-war levels, but grid fees are increasing costs.

• CO₂ emission allowance prices have risen since 2018, with volatility post-2022.

• International steel prices are lower than at the start of the year; European section prices remain resilient.